When purchasing term life insurance, here are some suggestions to make the most suitable choice:
Comprehensive protection responsibilities: No matter which insurance you choose, the first thing to focus on is its protection responsibility. Term life insurance usually provides the basic benefit of total disability upon death. It is important to note that some term life insurance products may only cover death liability, which can be directly excluded from such products. In addition to the basic benefits, some products may also provide some special benefits, such as additional benefits such as traffic accidents and sudden death, which can be used as a plus point for fixed life insurance.
Choose the duration and amount of coverage appropriately: Term life insurance usually covers periods of heavy liability, such as when you have a mortgage, car loan, children's education, etc. The sum insured should be at least based on the income of the next 5 to 10 years, if the sum insured is too low, it may not play a role in transferring risk.
The lower the premium, the better: In the case of the same coverage, the lower the premium, the better. The protection responsibilities of term life insurance are relatively simple, whether it is a ** or a low-priced product, the coverage content usually does not make much difference, so after selecting the sum insured, you can give preference to the product with a lower premium.
The shorter the waiting period, the better: The waiting period is a specified period of time after purchasing a product, and if the insurance is insured during this time, the insurance company will not pay. For consumers, the shorter the waiting period, the better, and products without a waiting period are certainly better.
Restrictions on coverage: When choosing a term life insurance product, you also need to pay attention to the product's health notices, exclusions of liability, and occupational restrictions. Health notices and occupational restrictions may vary from product to product, so you need to carefully understand and confirm whether you meet the insurance requirements of the product before applying.
It's a good idea to designate a beneficiary: A beneficiary is someone who can get an insurance claim. If the beneficiary is not designated, the beneficiary will be the legal beneficiary by default, and the compensation will be paid in accordance with the inheritance order of the Inheritance Law. To avoid possible disputes and hassles, it is advisable to designate a beneficiary when purchasing term life insurance.
For example, a woman aged 25-30 can choose to purchase a term life insurance policy with an amount of 1 million to cover up to the age of 60 with a 30-year payment period. Depending on her age and health condition, the annual premium she needs to pay may be around $600. This option ensures that she is adequately covered during periods of heavier responsibilities and that the premiums are relatively reasonable.
The above advice and analysis is for reference only, each person's situation and needs are unique, so it is best to consult a professional insurance advisor or broker for more specific advice when purchasing term life insurance.